Fuel prices rise as of tomorrow, Enemalta announced this afternoon.

It said these revisions reflect the prices fetched for the latest shipments of imported fuel. The December petrol and diesel consignments were based on December Platts prices which on average were higher than the previous delivery pricing basis, as a result of the rise in international crude oil prices and the increase in demand due to the freezing temperatures in Europe.

The International Energy Agency (IEA) said last week that the recent oil price spike was largely due to a rise in consumption in the third quarter of 2010 in the U.S. and Europe. Such a trend is expected to continue for a while, even into the New Year, the corporation pointed out.

Crude prices hovered just below a 26-month high struck in the past sessions as a blizzard on the U.S. East Coast boosted demand for heating oil. Prices were also supported by OPEC's resistance to pumping more crude through 2011 as the market was well supplied and comments by Kuwait's oil minister that the global economy could withstand an oil price of $100 a barrel. ICE Brent crude is trading close to $94.00 a barrel.

Petrol Platts prices (CIF Med, Prem Unl 10ppm) increased by 6.4% from an average price of $784/MT in November 2010 to an average level of $834/MT in December 2010.

Another major factor driving both petrol and diesel prices higher were the unfavourable EUR/USD exchange rate which weakened further throughout the month of December.